Leidos, Inc. awarded $23M for computer operations and facility support by GSA

Contract Overview

Contract Amount: $23,024,478 ($23.0M)

Contractor: Leidos, Inc.

Awarding Agency: General Services Administration

Start Date: 2008-04-01

End Date: 2010-03-31

Contract Duration: 729 days

Daily Burn Rate: $31.6K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 2

Pricing Type: COST PLUS AWARD FEE

Sector: IT

Official Description: COMPUTER OPERATIONS, FACILITY ENGINEERING SUPPORT AND FACILITY MANAGEMENT.

Place of Performance

Location: STENNIS SPACE CENTER, HANCOCK County, MISSISSIPPI, 39522

State: Mississippi Government Spending

Plain-Language Summary

General Services Administration obligated $23.0 million to LEIDOS, INC. for work described as: COMPUTER OPERATIONS, FACILITY ENGINEERING SUPPORT AND FACILITY MANAGEMENT. Key points: 1. Contract value of $23M over two years suggests a significant scope of services. 2. The use of a Cost Plus Award Fee (CPAF) contract type indicates a need for flexibility and performance incentives. 3. The contract was awarded as a competitive delivery order, implying a degree of market competition. 4. The duration of 729 days (2 years) is standard for this type of service contract. 5. The North American Industry Classification System (NAICS) code 541512 points to computer systems design services. 6. The contract is not a small business set-aside, suggesting it was awarded to a large business.

Value Assessment

Rating: fair

The total award of $23,024,478.03 over two years averages to approximately $11.5M per year. Without specific performance metrics or comparable contract data, it is difficult to definitively assess value for money. The Cost Plus Award Fee (CPAF) structure allows for flexibility but can lead to higher costs if not managed carefully. Benchmarking against similar facility engineering and computer operations contracts would be necessary for a more precise valuation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded as a 'COMPETITIVE DELIVERY ORDER' under a larger indefinite-delivery indefinite-quantity (IDIQ) contract, indicating that multiple vendors likely had the opportunity to bid. The presence of '2' in the 'no' field (number of offers) suggests at least two offers were received, which is a positive sign for competition. However, the specific details of the bidding process and the number of proposals submitted are not fully detailed here.

Taxpayer Impact: A competitive award process generally leads to better price discovery and potentially lower costs for taxpayers compared to sole-source or limited competition contracts.

Public Impact

Federal agencies requiring computer operations, facility engineering, and management services benefit from this contract. The services delivered are critical for the smooth functioning of government IT infrastructure and physical facilities. The contract is managed by the General Services Administration (GSA), supporting its mission to provide efficient government operations. The workforce implications include employment opportunities for individuals with expertise in IT operations, facility management, and engineering.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the IT services and facility management sectors. The IT services market is vast and highly competitive, with significant government spending. Facility engineering and management are essential support services across all government operations. The total federal spending on IT services alone runs into billions annually, making this contract a small but integral part of that ecosystem. Comparable contracts often involve long-term support for critical government functions.

Small Business Impact

The provided data indicates that this contract was not a small business set-aside ('sb': false). This suggests that the primary award went to a large business, likely Leidos, Inc. There is no explicit information on subcontracting plans for small businesses within this specific delivery order. Without this detail, it's difficult to assess the direct impact on the small business ecosystem, though large prime contractors are often encouraged or required to meet small business subcontracting goals on broader IDIQ vehicles.

Oversight & Accountability

The General Services Administration (GSA) typically has robust oversight mechanisms for its contracts, including performance monitoring and financial audits. As a competitive delivery order, it would be subject to the terms and conditions of the parent IDIQ contract and standard federal acquisition regulations. Transparency is generally maintained through contract award databases like FPDS. Inspector General oversight would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Risk Flags

Tags

it-services, facility-management, computer-operations, general-services-administration, leidos-inc, cost-plus-award-fee, competitive-delivery-order, large-business, information-technology, mississippi, service-contract

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $23.0 million to LEIDOS, INC.. COMPUTER OPERATIONS, FACILITY ENGINEERING SUPPORT AND FACILITY MANAGEMENT.

Who is the contractor on this award?

The obligated recipient is LEIDOS, INC..

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $23.0 million.

What is the period of performance?

Start: 2008-04-01. End: 2010-03-31.

What is the track record of Leidos, Inc. in performing similar IT operations and facility management contracts for the federal government?

Leidos, Inc. has a substantial track record with the federal government, often securing large and complex contracts across various domains, including IT services, logistics, and engineering. Their experience spans multiple agencies, including the Department of Defense, intelligence community, and civilian agencies. For IT operations and facility management, Leidos typically engages in providing comprehensive support, encompassing network management, cybersecurity, data center operations, and physical infrastructure maintenance. Their performance history on similar contracts would be detailed in past performance evaluations during the bidding process, which are crucial for assessing their capability to execute this specific award effectively. Reviewing their contract awards and performance ratings in public databases like FPDS can provide insights into their reliability and success rates in delivering these types of services.

How does the annual cost of this contract compare to similar IT operations and facility management contracts awarded by GSA or other agencies?

The annual cost of this contract, approximately $11.5 million ($23M / 2 years), needs to be benchmarked against comparable contracts to assess value. GSA manages a vast portfolio of IT and facility services contracts. To perform a comparison, one would look for contracts with similar scope (e.g., comprehensive IT operations, large-scale facility management), duration, and service level agreements. Factors like geographic location, specific technologies used, and security requirements can significantly influence pricing. Without access to detailed pricing data for comparable contracts, a precise benchmark is challenging. However, the competitive nature of the award suggests that the pricing is likely within a reasonable market range, assuming effective competition among bidders. A deeper analysis would involve examining the specific tasks and deliverables outlined in the contract statement of work.

What are the primary risks associated with a Cost Plus Award Fee (CPAF) contract for IT operations and facility management?

The primary risks associated with a Cost Plus Award Fee (CPAF) contract for IT operations and facility management revolve around cost control and performance definition. For the government, there's a risk that costs could escalate beyond initial projections if the 'cost' component is not tightly managed or if the contractor inflates expenses. The 'award fee' component introduces subjectivity; if the criteria for earning the award fee are not clearly defined, measurable, and consistently applied, it can lead to disputes or dissatisfaction. Contractors may focus on meeting award fee criteria rather than overall mission objectives. For IT operations and facility management, which involve complex, dynamic environments, ensuring that the award fee structure truly incentivizes the most critical outcomes (e.g., system uptime, energy efficiency, security posture) is paramount. Poorly defined metrics can lead to suboptimal performance or unintended consequences.

What is the expected effectiveness of this contract in ensuring reliable IT operations and facility upkeep for the supported entities?

The expected effectiveness hinges on several factors, including the clarity of the contract's performance standards, the contractor's capabilities, and the government's oversight. As a competitive delivery order, it implies that Leidos, Inc. was selected based on its ability to meet or exceed requirements. The CPAF structure is designed to incentivize high performance, suggesting an expectation of reliable service delivery. However, effectiveness is ultimately measured by the achievement of key performance indicators (KPIs) related to system availability, response times, facility maintenance schedules, and incident resolution. The General Services Administration's (GSA) role in monitoring performance and administering the award fee will be critical. If the contract is well-managed and the performance metrics are aligned with mission needs, it should contribute significantly to the reliable functioning of the supported IT systems and facilities.

How has federal spending on computer operations and facility management services evolved over the past five years, and where does this contract fit in?

Federal spending on computer operations and facility management services has generally seen a steady increase over the past five years, driven by the growing reliance on IT infrastructure and the need to maintain aging government facilities. Agencies are increasingly outsourcing these functions to specialized contractors to leverage expertise and potentially achieve cost efficiencies. This $23 million contract, spanning two years, represents a moderate-sized award within the broader federal spending landscape for these services. It fits within the GSA's mission to procure and manage shared services for the government. While not a mega-contract, it contributes to the overall federal investment in maintaining operational readiness and technological capabilities across various government departments or programs supported by GSA.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesComputer Systems Design and Related ServicesComputer Systems Design Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT)MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: Leidos Holdings, Inc. (UEI: 611641312)

Address: 1710 SAIC DR, MCLEAN, VA, 90

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $23,129,973

Exercised Options: $23,110,094

Current Obligation: $23,024,478

Parent Contract

Parent Award PIID: GS00T99ALD0210

IDV Type: GWAC

Timeline

Start Date: 2008-04-01

Current End Date: 2010-03-31

Potential End Date: 2010-03-31 00:00:00

Last Modified: 2014-03-11

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